Capital gain treatment (flat transfer) (cost of acquisition)

no the amount can't be treated as a cost of improvement. it can be included in cost of asset (exculed interest in instalment).

Please mention the section in which the treatement of this has been specified.

REFER AS-10

I need Tax treatement not Accounting Treatement. Please let me know about in this regard with reference to Income Tax Act, 1961.

The instalments paid are not improvement costs but acquisition costs only. Hence, the entire amount should be indexed from the year of acquisition.

asset cost consider in income tax same as accounting at the time of aquisation. only deprecition rate may be differ b/w accounting and income tax.

Hi, it is cost of acquisition. Cost of acquisition is the value of asset acquired, the payment pattern donot alter the treatment. Just because installment is paid it doesn't mean COI is differed till last installment is paid. The payment has nothing to do with the treatment. As long as asset is acquired legally the position of COI doesn't get altered with different types of payment.

Pls substitute COI with COA. Sorry for inconvenience